Centurion - Growth Driven By Bed Capacity & Rates; Keep BUY

Centurion - RHB Research 2025-04-29: Growth Driven By Bed Capacity & Rates; Keep BUY

Centurion - Growth Driven By Bed Capacity & Rates; Keep BUY

SGinvestors.io

Published: 2025-05-13 04:46 PM

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We believe gross profit margin going forward should outperform that of FY24, and hence, we raise our assumption and earnings slightly.

We roll over our valuation to FY25F-26F blended P/E and lift our target P/E to 10x (from 9x), or near +1 standard deviation of its mean.

Minimal impact to US tariffs.

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While Centurion derived 0.16% of revenue from the US market in FY24, its Centurion US Student Housing Fund reached its term in Nov 2024, with the properties currently being disposed of. Therefore, we believe Centurion will have minimal exposure to the US market.

Demand for beds and foreign workers should remain robust.

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Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

SGinvestors.io

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2025-04-29

Read also RHB's most recent report:
2025-05-23 Centurion - More Positive On Rate Assumptions; Keep BUY.

Price targets by 6 other brokers at Centurion Target Prices.

Listing of research reports at Centurion Analyst Reports.

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